Houston, College Station two of nation’s ‘Great Underpriced College Towns’

The magazine admitted to using a “liberal definition of the term ‘college town’.” (As evidenced by Houston topping the list. Houston? Really?)

Coming in third is College Station. The report found that the median home price there is $107,000, which it claims is 21 percent undervalued.

The report focuses not on those who might want to purchase homes for their student children, but for those who might want to live in a college town because of the on-campus cultural activities.

U.S. News and World Report says it used IHS Global Insight’s first-quarter 2009 House Prices in America report to determine which college towns have underpriced real estate. IHS used factors like population density and household income to compare the housing market’s value with what it should be, according to U.S. News and World Report.